Mixed response to CSG announcement

Updated
February 19, 2013 14:53:00

There's been mixed reaction to the New South Wales Government's new restrictions on coal seam gas activities. Environment and resident action groups who've fiercely campaigned against CSG projects have welcomed the news but they're also arguing that the exclusion zones don't go far enough. Meanwhile industry groups are calling for urgent talks with the Government to find out how their operations will be affected.

Meanwhile industry groups are calling for urgent talks with the Government to find out how their operations will be affected, as Lindy Kerin reports.

LINDY KERIN: It started off as a small community action group concerned about the rapid expansion of the coal seam gas industry. Now the Lock the Gate Alliance has more than 20,000 members across the country.

The president, Drew Hutton, says today's announcement shows the New South Wales Government has been listening.

DREW HUTTON: We've had to have a huge campaign that has mobilised thousands and thousands of people and that's what they're responding to, I've got no doubt about that.

LINDY KERIN: But Drew Hutton says the Government's announcement won't go far enough to allay the concerns of its members.

DREW HUTTON: It goes nowhere near far enough. First of all, it needs to be expanded to coal. Secondly, it needs to include all CSG, not just simply the new ones, the ones that haven't been approved. So that includes Gloucester, where not only have they got approved coal seam gas wells, but also two big coal mines in that beautiful little valley.

It also should protect good farmland, our water catchments, our vulnerable underground water systems - all of those things need to be put into an environmental reform package that says there are no go areas, not just simply the residential areas where there are marginal seats but all residential areas, all areas where we want to protect assets and far reaching reforms.

If his Government is, you know, visionary enough to do that and responding enough to the people to do that then he'll be treated fairly by the electorate. But if he doesn't then we'll be mobilising as far and as fast as we can for the next federal and state election.

LINDY KERIN: The Nature Conservation Council of New South Wales has also welcomed the announcement, saying it's a victory for common sense.

The chief executive officer, Pepe Clarke, says he's pleased existing CSG projects will be audited by the chief scientist. But like Drew Dutton, Pepe Clarke says the announcement does leave a lot of issues unresolved.

PEPE CLARKE: Issue number one is the drinking water catchments. Barry O'Farrell, back in 2009 said that it was common sense that mining should not be allowed in our drinking water catchments. We think it's time for him to deliver on that promise, and to rule out further mining and coal seam gas expansion in drinking water catchments right across the state.

People have got a right to safe, clean water. People have also got a right to clean, healthy air and for communities in places like the upper Hunter Valley, properly regulating the impacts of coal mining on public health is absolutely essential.

LINDY KERIN: Today's announcement will affect energy giant AGL, which had planned to expand its operations at Camden in Sydney's south-west. It was forced to suspend the project after a surge in community anger.

Nobody from AGL was available to comment, but in a statement the company said:

AGL STATEMENT (voice-over): This proposal will add to the gas supply crisis that New South Wales is facing as existing supply contracts roll off between 2014 and 2017. The absence of multiple new sources of supply in New South Wales will add to substantial upward pressure on gas and electricity prices in the state.

LINDY KERIN: The Australian Petroleum Production and Exploration Association says the new rules will make it harder for companies to operate.

The spokesman is Rick Wilkinson

RICK WILKINSON: I think it gives a real signal that the goal posts keep moving in New South Wales, so there are real concerns about companies that want to invest in New South Wales and create jobs. So that's really the bottom line.

LINDY KERIN: How will it affect the companies' operations, do you think?

RICK WILKINSON: Well again, they have to go back and look again at what their plans were, recalibrate, and now there's more red tape green tape to go through before actually going to be able to produce gas in New South Wales.